Last checked at 8 Jul 2021 07:00
8 July 2021
Avingtrans plc
("Avingtrans", the "Company", or the "Group")
Trading Update and Notice of Results
Avingtrans plc (AIM: AVG), which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, is pleased to announce a trading update in respect of the financial year ended 31 May 2021.
The Board is pleased to report that the results for the year ended 31 May 2021 are expected to be at least in line with market expectations, revised upwards following the announcement of the Company's interim results in February 2021.
The Group's year end net cash position was strong, standing at in excess of £23 million compared to net debt of £7.4 million as at 31 May 2020. Cash balances benefited from the successful sale of Peter Brotherhood Limited in March 2021, which resulted in net proceeds to the Company of £30.6 million. The Group's current orderbook and prospect pipeline remains robust.
As outlined in the Company's interim results, the Board is pleased to confirm the reinstatement of the Company's progressive dividend policy, following the dividend suspension last year due to Covid-19. A dividend will be recommended for the year ended 31 May 2021, which will also include an amount to reflect the non-payment of an interim dividend. The Company intends to reinstate more usual dividend payments in the current financial year, with an interim and full year dividend split, subject to maintaining appropriate financial headroom and flexibility in light of any future acquisition opportunities.
Notice of Results
Avingtrans will publish its results for the twelve months ended 31 May 2021 on 29 September 2021.
The management team will be hosting a presentation for analysts on the day of results - for more information please contact Zach Cohen at IFC Advisory on zach.cohen@investor-focus.co.uk.
Steve McQuillan, CEO of Avingtrans, commented: "We are delighted with the strong performance of the Group which will report results for the year ended 31 May 2021 in line with the previously upgraded market forecasts. Net cash in the business remains healthy which was strengthened following the successful sale of the Peter Brotherhood business in March.
"The Group is in a very good position to execute its PIE (pinpoint-invest-exit) strategy and its pipeline of opportunities is strong. The Board remains confident on the outlook for the Group which is reflected in the reinstatement of the full year dividend."
Enquiries:
Avingtrans plc | 01354 692391 |
Roger McDowell, Chairman Steve McQuillan, Chief Executive Officer Stephen King, Chief Financial Officer |
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Singer Capital Markets (Nominated Adviser) | 020 7496 3000 |
Shaun Dobson/Alex Bond (Corporate Finance) Rachel Hayes (Corporate Broking)
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IFC Advisory Ltd
Graham Herring Tim Metcalfe Zach Cohen
| 020 3934 6630 |
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About Avingtrans plc:
Avingtrans designs, manufactures and supplies original equipment, systems and associated aftermarket services to the energy, medical and industrial markets worldwide.
Business units
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Magnetica Ltd - Brisbane, Australia Magnetica Limited specialises in the development of next generation MRI technologies, including dedicated extremity MRI systems and MRI system components. Magnetica has successfully built and tested a compact, integrated 3 Tesla orthopaedic MRI system, demonstrating clinical-quality imaging. Commercialisation of this system (and others) is on-going. Magnetica's structure now includes two other business units:
Scientific Magnetics - Abingdon, UK Designs and manufactures superconducting magnet systems and associated cryogenics for a variety of markets including MRI and provides services for Nuclear Magnetic Resonance instruments.
Tecmag Inc, Houston, USA Designs, manufactures and installs instrumentation, including consoles, system upgrades, and probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems.
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